Old School Karate

Just started Cobra Kai season one on Netflix. How come none of you people told me about this? It’s amazing. Anyway, Johnny beats up a bunch of bullies and the kid he saved in the process is like “Whoa mister, was that jiu jitsu or MMA or something.” He’s like, “No, just old school karate.”

The news out of Georgia isn’t looking good for the GOP. The stock market implications are a return to a 28% corporate tax rate from 21% and tighter regulation over whatever the f*** Mark Zuckerberg and Jack Dorsey are up to. The immediate response in Nasdaq futures was a modest selloff.

The good news is that both the Dow Jones Industrials as well as the Russell 2000 names like it. Because while there is the prospect of a tax hike for corporations, this will likely be accompanied by an actual infrastructure bill to rebuild our economy. More spending equals higher bond yields, so the financial stocks are okay with this outcome too. Did I mention the tariffs and trade war are probably over too?

The recent rally, including today’s pre-market action, in materials, energy, industrials vs large cap tech? EM vs Developed? Value vs Growth? Traditional Economy vs Work From Home? It can continue.

That’s just old school karate.